BBS can take care of all your Business Valuation needs. Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial markets to determine the price they are willing to pay or receive to perfect a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to the allocation of a company’s purchase price among business assets, determining estate and gift taxation, establishing a formula for estimating the value of partners' ownership interest for buy-sell agreements, dividing assets in divorce litigation, and many other business and legal purposes. BBS’s team of professionals can make sure that your business is valued properly for whatever purpose you might require. We don’t just look at the financial records, but we get to know your business, its strategies, management, competitive advantages, intangible assets, and customer relationships. We analyze all aspects of your business to make sure we find any hidden or unknown value that may not be easily visible in the financial records alone. We provide you with detailed information that allows you and others to better understand the full value of your business. Before the appropriate value of a business can be properly measured, it is necessary to clearly understand the reason for and circumstances surrounding the business valuation.
These are generally known as the business value standard and the premise of value. The standard of value is the proposed conditions under which the business value will be determined. The premise of value relates to the underlying assumptions used to value the business. This includes determining whether the business is being sold, liquidated, or continuing as a going concern. Often business valuation includes the concept of fair market value or the value of a business enterprise determined between a willing buyer and a willing seller both with full knowledge of all the relevant facts and neither being compelled to complete a transaction. Sometimes valuation is more concerned about investment value or the value the company may have to a particular investor. Often you must consider the effect of synergy in any valuation for investment purposes. Another type of valuation is the intrinsic value or the measure of business value that reflects the detailed understanding of the company's economic potential. Business valuation results can vary considerably depending upon the standard and premise of value for any particular situation. In an actual business sale transaction, it is generally expected that the buyer and seller, each with a desire to achieve an optimal outcome, would appropriately determine the fair market value of a company. The synergies may or may not be included in the value based upon specific. Also a fair market valuation may not incorporate discounts for lack of control or marketability.